AI startup Perplexity valued at $18 billion with new funding

Founded in 2022, Perplexity has emerged as one of the most prominent companies using generative AI to rethink core internet services

Perplexity AI Inc., whose artificial intelligence-powered search engine competes with Google, has raised fresh capital in a deal that values the startup at $18 billion, according to a person familiar with the matter.

The company brought in $100 million with the financing, said the person, who asked not to be identified discussing private information. The deal is an extension of a previous round from a few months ago that valued the company at $14 billion, the person said — investments that underscore the Silicon Valley rush to back the top AI startups.

Perplexity declined to comment. The Financial Times previously reported some details of the deal.

Founded in 2022, Perplexity has emerged as one of the most prominent companies using generative AI to rethink core internet services. Last year, the startup tripled its valuation from $1 billion to $3 billion and then tripled it again several months later.

In March, Bloomberg News reported that Perplexity was looking to raise as much as $1 billion at a valuation of $18 billion, including the amount raised in the round, before moving forward with a smaller investment at a $14 billion value. The new cash infusion brings Perplexity back to its original valuation target.